Made Redundant? What Are Your Rights?

In the recent economic climate, redundancy has become more feared than ever and yet it has become an increasingly common part of the credit crunch

. Many companies are battling to stay solvent in the face of an increasingly competitive marketplace and redundancy is often the only option to ensure that a business maintains its profitability, however marginal. As an employee, it is well worth being aware of your rights, particularly in such a difficult financial environment.

If an employer wants to make someone redundant, there are certain guidelines that they must follow. The selection of an employee for redundancy must be as objective and as unbiased as possible. In addition, they must be given reasonable notice for their redundancy. You may also be entitled to redundancy pay, to act as a financial buffer for the time that you are unemployed. In other words, if you are asked to leave your job, the reasons given must be fair and you should be given fair warning so that you can seek other employment. If you are in any way unsatisfied that your employers reasons are invalid or feel that you have not been given ample notice, then you have the right to take your employer to Tribunal.

How It Works?

If you feel you have a case for unfair dismissal, you need to launch your claim within three months of being made redundant. Tribunals have been known to extend this, but only in exceptional circumstances. Using legal representation, you must inform the Tribunal as to the reasons for your claim. This is usually done on the application form and it gives the employer an idea of the charges laid against them. The employer is then given a 14 day period within which to challenge your claim. If they do not, then the Tribunal normally finds in favour of the employee. If the employer decides to challenge the claim, then there will be a period of time appointed for both parties to gather all the information they need to plead their case.

If this is the case, the next stage is for a Tribunal hearing to take place. This is effectively a court case, where members of the Tribunal will listen to the evidence and make an unbiased judgement based on the facts presented by both sides. If they rule in favour if the employee, they can order a number of actions to take place, such as:

Reinstatement this would involve the employee returning to their job with no loss of money of job security or money.

Engagement this would involve the employer engaging the employee in a different job within the business.

Compensation a financial award given to compensate for the loss of earnings and, in some cases, a sum to compensate for future loss.

While there are guidelines to ensure that dismissal doesnt happen without good reason, there are employers who, for one reason or another, will exercise their ability to do so. Situations such as clashing personalities or previous arguments may seem like a reason to make someone redundant in the heat of the moment, but if there are no justifiable causes for dismissal, the employer could face significant penalties at the hands of a Redundancy Tribunal.

Summary.

If you are facing a redundance or any other type of employment claim, you should seek early legal advice so that you are aware of your options.

by: Nick Jervis

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